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24 Cards in this Set
- Front
- Back
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explain (1 ex), the effect an unreported material change may have on a loss
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goes unreported = no coverage
insured unaware of change = coverage |
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If an insurer wishes to cancel the policy, they may do so at any time giving the insured written notice and
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15 days notice by registered mail, or
5 days written notice personally delivered |
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Any excess of premium, or unearned premium, must accompany the notice and will be calculated on what basis?
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Pro Rata
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If the insured requests cancellation, any refund of premium will be calculated on what basis?
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Short Rate
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If an insured loss should occur, the insured is required to give notice to the insurer
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forthwith, and
in writing |
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define "fraud"
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deliberate attempt to deceive, with view to securing some profit
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"Fraud" occurs at the time of a loss. What portion of a claim would an insurer be allowed to deny if they were able to prove the insured committed fraud?
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the *entire* claim
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(two) parties that can give notice and proof of loss if insured is unable or refuses to give notice and proof
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agents, their lawyer, friends, and relatives
mortgagee |
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The Insurance Act provides for an "appraisal" in (three) instances when there is a dispute as to the value of...? (three)
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property insured
property saved amount of loss |
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After completion of the loss, unless the contract provides for a shorter period, how long does the insurer have to pay the loss?
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within 60 days
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the insurer, instead of making payment, may repair, rebuild, or replace the property giving the insured written notice. If the insurer elects to repair, how many days written notice must be given to the insured?
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within 60 days
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If the insurer does decide to repair, rebuild, or replace, this must commence within what time period following receipt of the proofs of loss?
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within 45 days.
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When policies insure against a wide range of perils, insurers generally incorporate 5 "Additional Conditions" What are they?
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notice to Authorities
sue and Labour no Benefit to Bailee pair and Set parts |
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Explain the requirement placed upon the insured when there has been a loss due to certain criminal acts.
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give immediate notice to police, other authorities having jurisdiction
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When there is a loss/damage to only one item of a pair/set, the loss is not a total loss. Give an example of a loss to demonstrate your understanding of this condition.
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earrings
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(six) other legislated requirements contained in all contracts of fire insurance
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contents of Insurance Policies Legislated
removal Coverage limitation of Liability Clauses - Usage Legislated right of Subrogation Legislated waiver of Term or Condition effect of Delivery of Policy |
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(six) details that are to appear on every policy of insurance
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parties to contract
policy period loss payable or payee, if any type(s) of Insurance Coverages and Amounts of which insurer may be liable subject matter of insurance |
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(three) conditions applicable to the "Removal Clause"
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insured property must have been moved only to prevent loss, destruction, damage, further loss, destruction, damage.
amount of insurance available for any loss to property at unnamed location or reduced by amount paid for loss of property at named location (75 <- 25) coverage provided at unnamed location for the least of 7 days or policy expiry date. |
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What is the requirement when a contract of insurance contains any clause which allowed the insurer to pay an amount which is less than that purchased by the insured?
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contract of insurance shall have printed, stamped upon its face sheet in red ink
"this policy contains a clause(s) that may limit the amount payable." |
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(two) types of "Limitation Clauses"
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deductible Clause
co-Insurance Clause |
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Your client has a building valued at $300k and insured for $120k. Assuming a (partial) loss of $60k and an 80% Co-Insurance Clause, calculate the loss payment.
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Your client has a building valued at $300k and insured for $120k. Assuming a total loss and an 80% Co-Insurance Clause, calculate the loss payment
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explain "subrogation" (ex)
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to put "into another's shoes"
when property is lost because of others insured has right to take action also wants to be compensated, receives allows insurance company to take action in their place |
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Who can make changes to an insurance policy?
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person (not the insurance broker) authorized for that purpose
by insurer (usually insurance company underwriters) |
